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April 28, 2021
Question

How do I access schedule B of form 1040 to subtract Nominee Distribution of interest reported on schedule k-1 that is overstated per irs instructions?

  • April 28, 2021
  • 1 reply
  • 0 views
According to irs, I should subtotal my interest in line 1, write “Nominee distribution” with the amount of interest that is not mine, and subtract it from total in line 2.

1 reply

VolvoGirl
Employee
April 28, 2021

Here's how to split the 1099Int for Nominee Interest. Enter a 1099-Int under
Federal Taxes tab
Wages & Income
Interest and Dividends
Interest on 1099-INT - Click the Start or Update button

Whoever's ssn is on the 1099 enters the whole amount on their return. Then after you enter it, on the next page it will ask
Tell us if any of these uncommon situations Apply and pick the first one, We need to adjust the taxable amount.

 

Then on the next page fill in the amount as a POSITIVE number and pick the first Reason "I received all or part of this interest for someone else".

 

Then on the other person's return you enter it as a 1099Int and put their amount in box 1.

VolvoGirl
Employee
April 28, 2021

Oh, sorry.  I missed you said it is from a K-1.  Don't know about that one.  

April 28, 2021

Maybe that’ll still work. It should all end up on schedule B whether from 1099 or schedule k-1 (1040). Thanks